Consumers call on credit cards for Christmas cash
This festive season, millions of Aussies will rely on credit cards to see them through the Christmas period, a new study has claimed.
A poll from MasterCard found that 60 per cent of people are planning on using their credit cards to pay for presents, food and other festive treats, with 84 per cent believing that they can pay off the debt within three months.
However, Consumer Action Law Centre chief Carolyn Bond has warned that many people may struggle to pay off their debts without being hit with hefty interest charges.
“It may be, for some people, the first time they need to explain to family and friends that their partner’s job is insecure, or income has reduced,” she told the Herald Sun, adding that many may prefer to hide their spending on cheap credit cards instead.
However, she warned that people could find themselves in a difficult situation a few months down the line as the interest demands mount up.
Another study published by MasterCard earlier this year found that Australians are starting to ditch cash in favour of contactless payment methods and other emerging technologies.